Update Skilled Worker Visa 2025

The Skilled Worker visa is the UK’s main route for overseas nationals to take up sponsored employment. It plays a central role in government policy by balancing the country’s labour market needs with immigration control.

What this article is about: This article explains the latest Skilled Worker visa updates for 2025. It focuses on the new salary thresholds, reforms replacing the former Shortage Occupation List with the Immigration Salary Discount List (ISDL), transitional rules for existing workers (currently signposted to run until April 2030), and the compliance duties placed on sponsoring employers. It also considers the long-term impact on settlement and workforce planning.

Section A: Skilled Worker Visa in 2025 – An Overview

1. Context and scale of the 2025 update

The Skilled Worker route remains the principal mechanism for UK employers to sponsor non-UK nationals in eligible roles. Since replacing Tier 2 (General) in December 2020, the route has undergone periodic change. The 2025 reforms are among the most consequential, raising salary thresholds, restructuring shortage arrangements via the ISDL, and narrowing the availability of discounted pathways.

2. Policy aims behind the reforms

The government states that the 2025 measures are designed to reduce reliance on low-paid migrant labour, support wage growth, and prioritise the resident workforce, while preserving targeted flexibility for genuine skills gaps identified through the ISDL. In practice, this shifts the route further toward higher-paid or specialist roles and increases compliance pressure on sponsors.

3. Key changes at a glance (2025)

• General salary threshold increased to £41,700 for most roles.
• Tradeable points remain but with tighter scope, including a lower threshold at £33,400 for limited categories (e.g., eligible new entrants or relevant PhD holders).
• Transitional salary protection at £31,300 for qualifying workers already in the route before the changes; currently signposted to run until April 2030.
• Health & Care roles continue with a £25,000 minimum where eligible under the sub-route.
• The Shortage Occupation List framework is replaced/reduced via the Immigration Salary Discount List (ISDL), restricting discounts to a narrower set of acute shortage roles.
• Heightened sponsor compliance focus, including accurate salary setting on CoS and timely updates through the Sponsor Management System (SMS) when salaries change.

4. Practical effect on employers and workers

For employers, the route remains indispensable for roles that cannot be filled domestically, but higher salary floors and a tighter ISDL mean increased labour costs and more rigorous planning. For workers, eligibility is concentrated in higher-paid roles, with transitional protections cushioning some existing staff but not new applicants.

Section A summary

The Skilled Worker visa continues as the UK’s flagship sponsored work route, but the 2025 update materially raises entry and compliance standards. With higher salary thresholds, a narrower ISDL, and closer scrutiny of sponsor practices (including SMS salary updates), both employers and applicants must plan more carefully—bearing in mind transitional salary protections currently signposted to April 2030.

Section B: 2025 Salary Threshold Updates

1. General threshold (£41,700)

The general salary threshold for most Skilled Worker applications is £41,700. New sponsorships must meet or exceed this level unless a permitted discount applies under the tradeable points provisions or the Immigration Salary Discount List (ISDL). Employers should ensure the figure stated on the Certificate of Sponsorship (CoS) matches the contractual pay and complies with the applicable occupational requirements.

2. Lower tradeable threshold (£33,400)

A reduced threshold of £33,400 is available in limited scenarios through tradeable points, for example where the applicant qualifies as a new entrant to the labour market or holds a relevant PhD. This flexibility is narrower than under pre-2025 rules and must be evidenced precisely on the CoS. Employers should verify that the role and applicant clearly fit the relevant tradeable category before relying on this discount.

3. Transitional protection (£31,300)

Workers who were already in the Skilled Worker route before the 2025 reforms may rely on a transitional salary level of £31,300. Current Home Office policy signposts these protections to run until April 2030, providing stability for extensions and changes that remain within the qualifying parameters. Sponsors must confirm eligibility by checking the worker’s immigration history and ensuring the CoS reflects the transitional basis.

4. Health & Care sub-route (£25,000)

Certain roles that qualify under the Health & Care Worker provisions continue with a minimum salary of £25,000. Eligibility depends on the role being within the Health & Care sub-route and meeting the relevant criteria. Employers should confirm that the occupation code is eligible and that all sub-route rules are satisfied before applying the reduced level.

5. Compliance and practical impact

The uplifted thresholds increase wage costs for sponsored recruitment and reduce access for lower-paid roles. Sectors that previously relied on broader shortage flexibilities will face tighter constraints due to the narrower ISDL. From a compliance standpoint, sponsors must:

• Issue CoS with salaries that meet the applicable threshold (general, tradeable, transitional, or Health & Care).
• Keep payroll and contract records demonstrating the salary actually paid matches or exceeds the CoS figure.
• Use the Sponsor Management System (SMS) to promptly update salary changes in line with 2025 rules.

Failure to set or maintain the correct salary can lead to visa refusals, compliance action, or sponsor licence risk.

Section B summary

From 2025, Skilled Worker salary floors are materially higher: £41,700 for most roles, £33,400 for specific tradeable categories, £31,300 under transitional protection (currently signposted to April 2030), and £25,000 for eligible Health & Care roles. Employers should budget accordingly, verify eligibility before relying on discounts, and ensure salaries are correctly recorded and updated on the SMS.

Section C: Shortage Occupations & Tradeable Points

1. Immigration Salary Discount List (ISDL)

From 2025, the former Shortage Occupation List has been replaced and narrowed into the Immigration Salary Discount List (ISDL). Only roles on this revised list now qualify for reduced salary thresholds. The ISDL reflects government policy to restrict discounts to a small number of acute shortage roles, with many positions in hospitality, logistics, and certain care areas no longer eligible. Employers must check the current ISDL before issuing a Certificate of Sponsorship (CoS).

2. Tradeable points system in 2025

The Skilled Worker visa continues to operate under a points-based system. Applicants need 70 points in total, including:

• 50 mandatory points for sponsorship, skill level, and English language.
• 20 tradeable points, which may be earned through combinations such as:

• Meeting a lower salary threshold of £33,400 with an eligible PhD relevant to the job.
• Qualifying as a new entrant to the labour market.
• Holding a role on the ISDL.

3. Employer implications

Employers who previously relied on broad shortage occupation discounts face higher recruitment costs. The reduced ISDL means fewer roles are eligible for discounted thresholds, and reliance on tradeable points is now far more limited. Businesses must plan recruitment budgets on the assumption that the £41,700 general threshold will apply unless there is clear evidence that a discount route is available.

4. Applicant implications

For workers, access to discounted salary levels is more restricted. Only applicants whose roles are on the ISDL, or who qualify through new entrant or PhD routes, may rely on lower thresholds. For most applicants, eligibility is tied to higher-paid roles, limiting opportunities for lower-wage positions.

Section C summary

The 2025 Skilled Worker reforms replace the Shortage Occupation List with the narrower Immigration Salary Discount List and tighten the operation of tradeable points. Employers must check carefully whether a role qualifies for discounts, while most applicants should expect to meet the £41,700 general threshold unless they fall into an ISDL or other permitted category.

Section D: Employer Sponsorship & Compliance

1. Sponsor licence requirement

Employers must hold a valid Skilled Worker sponsor licence to lawfully recruit under this route. The licence allows the organisation to issue Certificates of Sponsorship (CoS) to eligible applicants. The Home Office assesses whether an employer is genuine, compliant, and capable of meeting sponsor duties before granting or renewing a licence.

2. Sponsorship duties in 2025

Sponsors must continue to meet core duties including:

• Carrying out compliant right to work checks before employment begins.
• Maintaining accurate records of workers’ contact details, contracts, and payroll.
• Reporting changes such as job role, salary, or employment status promptly to the Home Office.

Since 2025, the Home Office has increased scrutiny on salary compliance. Employers must ensure the salary stated on the CoS meets the updated thresholds and must update salary details on the Sponsor Management System (SMS) if pay changes during employment. This is now a priority compliance requirement.

3. Transitional arrangements

Workers who entered the Skilled Worker route before the 2025 changes may rely on the transitional threshold of £31,300. Current guidance indicates this protection will run until April 2030. Sponsors must carefully assess eligibility, confirm visa timelines, and ensure the CoS reflects the correct threshold. Incorrect application of transitional rules could result in refusals or compliance breaches.

4. Compliance risks

Sponsors who fail to meet their duties risk enforcement measures, including:

• Downgrade or revocation of the sponsor licence.
• Civil penalties for illegal working where right to work checks are not properly carried out.
• Inability to continue sponsoring existing workers or issue new CoS.

Given the heightened focus on sponsor compliance in 2025, employers should review HR systems to ensure they can evidence salary payments, CoS accuracy, and prompt reporting of changes through the SMS.

Section D summary

Sponsorship duties remain central to the Skilled Worker visa, but the 2025 updates increase compliance obligations. Employers must meet higher salary requirements, apply transitional thresholds correctly, and promptly update the SMS when salaries change. Failure to do so risks enforcement action and loss of sponsorship capability.

Section E: Settlement & Long-Term Impact

1. Indefinite Leave to Remain (ILR)

Skilled Worker visa holders can still qualify for Indefinite Leave to Remain (ILR) after five years of continuous lawful residence under this route. The 2025 reforms do not change this timeline. However, applicants must show that their role met the required salary threshold at the point of settlement. Transitional salaries may not always meet ILR thresholds unless expressly protected, so careful assessment is needed when preparing for settlement applications.

2. Switching between routes

Applicants may continue to switch into the Skilled Worker route from certain visa categories, such as Student or Graduate. From April 2025, the higher salary thresholds apply to all new Skilled Worker applications, meaning switching is now less accessible unless the applicant qualifies for a reduced or transitional level. Employers must check that switching applicants meet the updated requirements before assigning a Certificate of Sponsorship (CoS).

3. Long-term workforce planning

The reforms are part of a wider government policy to reduce dependence on migrant labour. Employers should therefore plan for:

• Higher salary budgets for overseas recruitment.
• Tighter access to salary discounts under the ISDL.
• Potential issues at visa extension or ILR stage if salaries have not kept pace with updated thresholds.

Failure to plan may result in recruitment gaps or difficulties retaining staff who cannot extend or settle due to salary shortfalls.

4. Dependants and family members

Dependants of Skilled Worker visa holders remain eligible to apply. The 2025 update does not change the dependent framework, but higher visa fees and Immigration Health Surcharge (IHS) increases now apply. Sponsors and applicants should factor these additional costs into their financial planning when supporting dependants.

Section E summary

The Skilled Worker visa remains a five-year route to ILR, but the 2025 reforms increase the importance of maintaining qualifying salaries throughout employment. Switching routes is possible but more restrictive, and employers must adapt workforce planning to higher salary costs and tighter ISDL criteria. Dependants remain eligible but face increased visa and IHS charges.

FAQs

1. What are the new Skilled Worker salary thresholds in 2025?

The principal floors are: £41,700 (general threshold), £33,400 (limited tradeable categories such as eligible new entrants or relevant PhD roles), £31,300 (transitional protection for qualifying workers already in the route before the changes, currently signposted to April 2030), and £25,000 for eligible roles under the Health & Care sub-route.

2. Do these changes apply to existing Skilled Worker visa holders?

Existing workers may rely on the transitional threshold of £31,300 if they were in the route before the reforms and continue to meet the requirements. Transitional protection is time-limited (currently signposted to April 2030) and does not generally apply to new applications after the changes.

3. What happened to the Shortage Occupation List?

The former Shortage Occupation List has been replaced/reduced through the Immigration Salary Discount List (ISDL). Only roles on the ISDL may benefit from discounted salary thresholds. The list is narrower than before, so employers must check whether a role is currently listed before relying on a discount.

4. How do tradeable points work under the 2025 rules?

Applicants must reach 70 points. Alongside 50 mandatory points for sponsorship, skill level, and English, the remaining 20 points are “tradeable” and can be earned, for example, by meeting the £33,400 salary with an eligible PhD relevant to the role, qualifying as a new entrant, or holding a role on the ISDL. The scope for tradeable discounts is tighter than under pre-2025 rules.

5. Can Skilled Worker visa holders switch employers under the new rules?

Yes, but they need a new Certificate of Sponsorship from the new sponsor and must meet the applicable 2025 salary threshold for the role. Where a worker relied on transitional protection, changing sponsor may affect their ability to continue using that protection unless the rules expressly allow it for their circumstances.

6. What happens if a sponsored worker loses their job?

The sponsor must report the end of employment via the Sponsor Management System (SMS). The Home Office may curtail the worker’s leave, providing a limited period to switch to another qualifying route or depart the UK. Workers should take advice promptly; sponsors must ensure timely and accurate reporting to avoid compliance risk.

7. What are the current processing times?

Typical service standards remain broadly unchanged: applications made outside the UK are commonly decided in around 3 weeks, and those made inside the UK in up to 8 weeks, with priority options available for an additional fee where offered.

8. Do the 2025 changes affect ILR (settlement)?

The five-year pathway to Indefinite Leave to Remain (ILR) remains. At settlement, the role must meet the applicable settlement salary threshold in force at the time of the ILR application. Reliance on transitional salaries may not always satisfy ILR unless specifically protected, so forward planning is essential.

9. Are dependants still allowed, and what costs apply?

Dependants remain eligible under the Skilled Worker route. However, visa fees and the Immigration Health Surcharge (IHS) have increased, so sponsors and applicants should budget accordingly when planning family applications and extensions.

Conclusion

The Skilled Worker visa remains the UK’s flagship route for sponsored employment, but the 2025 update has substantially raised requirements. Salary thresholds are now higher, the Shortage Occupation framework has been replaced with the narrower Immigration Salary Discount List (ISDL), and transitional protections are only temporary, currently signposted to last until April 2030. Sponsors also face stricter compliance expectations, particularly around salary accuracy and updates through the Sponsor Management System (SMS).

For employers, this means increased wage costs, tighter recruitment planning, and the need for robust HR systems to avoid licence risks. For workers, eligibility is focused on higher-paid roles, with fewer opportunities for those seeking lower-salaried employment. Settlement remains possible after five years, but applicants must ensure they continue to meet the relevant thresholds at ILR stage.

Overall, the 2025 reforms mark a decisive shift in UK immigration policy. Employers and applicants should seek professional advice where necessary, plan for long-term compliance, and prepare for further changes in the coming years.

Glossary

Useful Links